Bitpanda, an Austrian cryptocurrency broker, announced on Tuesday that it has raised $263 million in a funding round headed by Valar Ventures, a venture capital firm founded by billionaire Peter Thiel, for a valuation of $4.1 billion.
The current round has been more than triple the broker’s last value, which was $170 million at a $1.2 billion valuation in March. Alan Howard, a British hedge fund manager, REDO Ventures, LeadBlock Partners, and Jump Capital were among the investors who injected their money into Bitpanda in the latest round.
While native cryptocurrencies, such as Bitcoin, have experienced high price volatility, they have gone a milestone ahead and are gradually being accepted by larger corporations. When it first went public in April, another crypto exchange, Coinbase, had a market capitalization of $112 billion.
According to Bitpanda Chief Executive Officer Eric Demuth, the fintech market has seen a lot of ridiculous valuations because there aren’t many excellent startups at the moment which has seen demand exceed supply.
The cryptocurrency market has a high growth rate witnessed every day, aside from the irregular dips experienced once in a while. This has made investors to flood the market as they don’t want to miss out on the high returns in investments, in the fast growing crypto world.
“We are profitable for five years now, constantly, every year.”
Bitpanda, which has over 3 million members and is present in eight European countries, is planning to rapidly expand into new markets this year.
Bitpanda’s website allows users to invest as little as $1 in a variety of goods, including fractional equities, cryptocurrencies, and precious metals, with the aim of capturing a wider market.
Demuth stated that Bitpanda has no immediate intentions to go public, but if it does, it will favor the straight listing method, similar to Coinbase, RobinHood, and Wise.
“We will take our time in that regard.” Demuth said.